Howard v. Allstate Indemnity Co.

176 F.R.D. 265, 1997 U.S. Dist. LEXIS 18230, 1997 WL 709976
CourtDistrict Court, E.D. Tennessee
DecidedOctober 30, 1997
DocketNo. 1:96-CV-74
StatusPublished
Cited by1 cases

This text of 176 F.R.D. 265 (Howard v. Allstate Indemnity Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howard v. Allstate Indemnity Co., 176 F.R.D. 265, 1997 U.S. Dist. LEXIS 18230, 1997 WL 709976 (E.D. Tenn. 1997).

Opinion

MEMORANDUM

COLLIER, District Judge.

The Court is called upon to consider both the authority for and the propriety of its local rule authorizing the taxation of juror costs upon parties and attorneys when cases are settled too late to prevent the Court from incurring juror costs. E.D. TN. L.R. 68.2. Having considered the clear language of the rule, the arguments of counsel advanced at the hearing this Court held on October 3, 1997, and the applicable law, the Court holds that Local Rule 68.2 is a valid and proper exercise of its authority and the assessment of juror costs is appropriate in this case.

At the conclusion of the October 3, 1997 hearing, the Court, after hearing arguments of counsel for both parties, announced its decision on Plaintiffs memorandum in opposition to the assessment of juror costs to the Plaintiff. (Court File No. 40). The Court DENIED Plaintiffs motion and ORDERED the juror costs of $1,265.76 assessed as follows: forty (40) percent to be paid by the Plaintiff Juanita Howard and sixty (60) percent to be paid by the Defendant Allstate Indemnity Company. The Court further ORDERED payment of these costs to the Clerk of the United States District Court within thirty (30) days.

Though the Court stated its reasons for the decision from the bench, the Court will take this opportunity to reduce its decision to written form.

I. PERTINENT FACTS

This case was filed on February 15, 1996, in the Chancery Court for McMinn County, Tennessee and removed to this Court on February 29, 1996. (Court File No. 1). A scheduling conference was held on June 28, 1996, at which time a trial date of October 1, 1997, was set by agreement of the parties. (Court File No. 8). On the morning of October 1, 1997, at approximately 8:00 a.m., the Court was notified the parties had settled the [267]*267case the night before, at some time after 5:00 p.m.

By 8:00 a.m. on October 1, 1997, the prospective jurors necessary for the trial were already on their way to the courthouse and could not be informed not to report for jury duty. Twenty three jurors were summoned and twenty two actually reported for duty. As a result of the jurors reporting for juror duty, the public will bear a cost of $1,265.76. This cost is mandated by statute. 28 U.S.C. § 1871.

When notified of the late settlement, the Court informed counsel the parties might be assessed the costs of the jurors pursuant to Rule 68.2. Plaintiff objected to the imposition of juror costs and filed a memorandum in opposition. Plaintiff argued the Court did not have statutory authority to assess juror fees. Plaintiff further argued Rule 68.2 is unwise and serves as a deterrent to settlement, the juror costs are excessive, and costs should not be taxed against the Plaintiff because Plaintiff was diligent in her efforts to settle this case. At the hearing, Defendant argued any costs assessed by the Court should be split equally between the parties.

II. DISCUSSION

The Court will first address the validity of Rule 68.2 and then address the propriety of taxing costs in this case.

A. Validity of Local Rule 68.2

Local Rule 68.21 provides:

Whenever a civil action scheduled for jury trial is settled so late that it is impossible to prevent the court from incurring juror costs, those costs may, in the discretion of the court, be assessed against one or more of the parties and/or their counsel. Juror costs include attendance fees, per diem, mileage and parking.

A local rule of this type has been in effect in the Eastern District of Tennessee at least since 1989 — well before Plaintiff filed this case. Rules designed to assess juror costs to the parties when they settle their case late are very common across the country. The Western District of Tennessee has a similar rule which permits the imposition of juror costs against the parties unless the clerk’s office is notified of a settlement by 1:00 p.m. on the day prior to trial. L.R. 18(b), Western District of Tennessee. Many district courts outside of Tennessee also have such a rule.2

Plaintiff argues the Court has no statutory authority for Rule 68.2. In support of this argument, Plaintiff directs the Court to 28 U.S.C. §§ 1914 and 1920. Plaintiffs reliance on these statutes is misplaced.

Plaintiff relies heavily on the language, “[t]he clerk shall collect from the parties such additional fees only as are prescribed by the Judicial Conference of the United States.” 28 U.S.C. § 1914(b) (emphasis added). The Plaintiff then argues the Judicial Conference of the United States has not authorized the imposition of juror costs. However, 28 U.S.C. § 1914 deals with fees collected by the clerk for “filing and miscellaneous fees.” Juror costs ordered by the Court do not fall within this statute.

Plaintiff next argues 28 U.S.C. § 1920 provides a broad lists of costs the Court may [268]*268impose and excludes any and all other costs. Plaintiff contends the Court is limited to assessing only the costs on that list and, because juror costs are not included on the list, the Court’s local rule is without statutory authority.

In every reported case where this precise issue has been raised, Plaintiffs argument has been rejected. Three circuits have dealt with the issue of whether 28 U.S.C. § 1920 prohibits the imposition of juror costs pursuant to a local rule. United States v. Claros, 17 F.3d 1041 (7th Cir.1994) (district court assessed juror costs of $2,250 against defense counsel because attorneys did not appear in court on time for trial); White v. Raymark Industries, Inc., 783 F.2d 1175 (4th Cir.1986) (juror costs of $2,000 assessed against defendant due to late settling of case); Martinez v. Thrifty Drug and Discount Co., 593 F.2d 992 (10th Cir.1979) (juror costs of $1,026.72 assessed against plaintiff and her counsel for late settlement of case).3 All three courts determined 28 U.S.C. § 2071(a) provided statutory authority for local rules which impose juror costs against late settling parties. Claros, 17 F.3d at 1044; White, 783 F.2d at 1176; Martinez, 593 F.2d at 993. In White and Martinez, the courts also determined Fed.R.Civ.P.

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176 F.R.D. 265, 1997 U.S. Dist. LEXIS 18230, 1997 WL 709976, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howard-v-allstate-indemnity-co-tned-1997.